Marvel’s Blade is close to finishing production as Arkane nears closure

A corporate bloodsucker The developer behind Dishonored reportedly has less than a month to secure a buyer, or it could face closure as part of Xbox’s sweeping cuts. Xbox’s widespread layoffs are expected to affect around 3,200 people by the end of June next year, as Microsoft works to trim its operations and improve its financial position. This so-called “reset” has already hit 1,868 employees across two separate rounds.

The first, in July, saw studios including Double Fine, Compulsion Games, and Undead Labs split from the company. Two studios, however, still have an uncertain future: Ninja Theory, the team behind Hellblade, and Arkane Lyon, the developer of Deathloop and Dishonored. Ninja Theory appears to be heading toward closure after two buyout deals collapsed, but Arkane Lyon is a more complicated case.

Under French law, Xbox management must consult with an in-office works council made up of Arkane Lyon staff before making any major restructuring decisions, which makes the process longer and easier to challenge. When the layoffs were first announced, Xbox said it had begun “required consultation with its works council to review potential strategic options.” Now, thanks to a new report, we know the exact deadline by which Arkane Lyon could be forced to shut down. According to French outlet Le Monde, Arkane Lyon has until November 13, 2026 to find a buyer, or its 217 employees could be laid off.

A union representative, identified as Simon, said he “remains hopeful of saving the studio and its jobs” and has asked for the deadline to be extended. Speaking to the outlet, he also claimed that “several forms of takeover are being considered.” He said they have not ruled out challenging any proposed closure either, arguing: “Microsoft is looking to part ways with Arkane, even though the studio is doing well, simply to cut costs and boost the short-term profitability of its investments.” The report also claims that the studio’s next project, Marvel’s Blade, is “nearing the end” of production. Earlier this year, The Verge reported that the game had been internally pushed back to late 2027 and was running over budget.

Commenting on the possibility of the game being canceled, Simon added: “It would be a monumental waste – artistically, humanly, and commercially.” Arkane Lyon is best known for the Dishonored series, though its last release was Deathloop in 2021. The studio said the game had “reached” five million players by February 2023, although its actual sales figures remain unknown. If Marvel’s Blade is indeed close to completion, it does seem odd that Microsoft wouldn’t simply see it through to release.

However, Blade is not nearly as commercially reliable as Spider-Man or Wolverine, and with the new Blade movie apparently stuck in limbo, the company may not want to take the risk. Despite Arkane Lyon’s strong track record, very little has been shown of Marvel’s Blade since it was announced in December 2023, aside from the brief teaser trailer.